Clause 1 promissory note contains which information?

• A. Interest rate
• B. Names of borrower & lender and loan principal
• C. Property description
• D. Payment schedule

Answer: (C)

The main idea here is that Clause 1 establishes the link between the loan and the real property by naming the specific parcel involved. Including the property's legal description in this clause ensures there is a precise, unambiguous reference to the collateral backing the debt. Without a detailed property description, it would be hard to prove exactly which real estate secures the loan if questions later arise. Other details—like who borrows or lends, how much is borrowed, the interest rate, or the payment schedule—are typically covered in other parts of the note or in related security documents. But the property description is the element that ties the loan directly to a particular piece of real estate, which is why it sits in this opening clause.